Investors pump $ 22 billion in a short -term American debt to travel the market storm

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Investors have paid $ 22 billion in the short -term US debt this year after the concerns about Donald Trumps' economic and commercial policies sparked a race for paradise assets and sent actions.

Nets in short -term cash funds reached around $ 21.7 billion between early January and March 14, according to EPFR data, preparing the land for the largest quarterly flood in vehicles in two years. The flows in long -term state bond funds were also positive for the quarter to date, but totaled 2.6 billion dollars much smaller.

The money cascade in a shorter public debt occurs, investors, investors have requested shelter in a sale in more risky assets, such as the actions and obligations of sick companies, in the midst of concerns that increase the order of aggressive trade will slow growth in the greatest economy of worlds and Stoke High Inflation.

There have been substantial flows, and this is perfectly logical for us because you have had a lot of volatility in these markets with integrated risks, such as actions, said Bob Michele, responsible for world fixed income at JPMorgan Asset Management. And now you look at the American bond market, and this can be the anchor of the storm.

A Bank of America survey this week has shown that investors have reduced their allowances on American actions in March, while undesirable obligations distribute the gap in the loan of costs between poorly classified companies and the US government have climbed sharply.

Mark Cabana, head of the United States, praises the strategy in Bofa, said: if you are increasingly concerned about risk assets and perhaps the possibility of an economic slowdown, or certainly of the growing growth problems, then it is probably logical to think of withdrawing more risky alternatives.

Analysts also noted that attractive yields had polished the call for short -term debt. Treasury bills of one month, for example, provide an annualized return of 4.3%, while two -year tickets offer 4%.

Investors and strategists also noted that if the American economy should show new signs of slowdown and that the federal reserve was to reduce interest rates, the yields of the Treasury would make the slightest assessment of prices to the bonds.

The bet on the short -term American debt will be tested later Wednesday, when the Fed publishes its latest economic projections and interest rates. The markets expect two to three reductions in the rate of central banks policy this year, and any gap compared to these prospects is likely to stop by the fixed income markets.

Analysts noted that uncertainty about the trajectory of the US economy was also a factor in pushing investors to short -term debt.

With pure de-insraining and [if] You think that stock markets will go through a correction, money tends to go in cash and cash, said Michele de JPMorgan.

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It is certainly, the assets of the money market fund have increased, he added, pointing vehicles which hold cash bills and ultra-short cash equivalents, but also have short-term bond assets.

Andy Brenner, head of international fixed income securities at Natalliance Securities, added the only reason why you would like to go out in the long end of the [Treasury] The curve at the moment is that you believe that the American economy slows down and that you will have a bigger blow for your long -term money.

Cabana concluded that for those who were concerned about the risks of growth and reflection rates will drop, it is logical to extend the curve.

However, he added, if you lack this conviction, and you are just looking for a certain security, the front funds are liquid, safe and probably the easiest to enter and go out.

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